>> this eek on-- week on the journal editorial report. key republicans drop out of the debt limit as conservative raise the ante as their cut cap and balance plan a good one? plus, months of union protests may have taken their toll on approval ratings and wisconsin governor scott walker tells us what he's learned from that fight and why he'd do it all over again. and as president obama pulls the plug on his afghan troop surge. can the mission on the ground still be accomplished. >> welcome to the journal,

editorial report. i'm paul gigot. with the clock running out on the debt ceiling deal. house majority leader eric cantor senator whip jon kyl dropped out of the bipartisan talks led by vice-president joe biden leaving the results in doubt. and a rift over the republican party over the so-called cap and balance plan. more than 20 conservative members of congress signed on. promising to block a vote on raising the debt ceiling unless it's paired with near term spending cuts, enforceable spending caps, and congressional passage of a balanced budget amendment. journal the panel this week, columnist and deputy editor, dan henninger and james freeman and washington, kim strassel. let' talk about the debt

ceiling. the republicans say they walked out because the administration is insisting on tax increases, is that how you read it? >> that's part of it. this is partly a reminder to the white house about who has the leverage here, is what republicans wanted to do. they said, look, you guys are the ones that asked me not to raise the debt limit and we said we would do that with spending cuts and now you're saying you won't lls there are tax hikes and there's also supposedly some discussion about new stimulus. and i think that the republicans were saying, look, let's remember what we've decided we're going to talk about here is spending cuts or nothing, that's our deal. >> paul: but do the house republicans really have leverage? they have to vote for a debt ceiling increase, don't they? how much leverage do they really have? >> i think they do, because the white house also doesn't want there to be a default and here is the reality. you look the at the polls, and the public definitely wants spending cuts and also doesn't want tax hikes and the economy is in a bad situation and everyone knows this would be a bad time for tax increases and so, i mean, that's helping

them in these negotiations. >> okay pts one of the reasons why the white house has come along as far as it has. >> this is a puzzle to me, james, why does the white house think that tax increases can possibly pass the house? the votes aren't there? >> the other one is when president obama's reelection instincts. and he thinks he needs a tax increase going into next year. neither one makes sense, it's a puzzle. >> paul: dan. >> to james' point we're in a presidential election and for the democrats you'd think they could adjust, but the fact is government is the universe they live in and taxes are their oxygen. that's the reality. and they're fot going to break away from it. now, keep in mind, the rest of the political content. president obama has already, as the left says, caved on eliminating the bush tax rates and extended those. >> that's not popular at all. >> that's not popular.

>> with the party and cutting spending, everyone thinks we have to cut spending, the left doesn't think we have to cut spending, that's his base. >> i think one of the reasons that the president and biden are insisting on some type of tax increases is precisely because of the pushback on the left. they doesn't want to make that same kind of decision and feel that heat. >> meanwhile, the november 2010 message to the republicans is you better cut spending or you're out of office and you've got two divisive sources. >> what about the rebate within the republican party in the balanced budget amendment with some of the republicans saying look, we're not going to vote for a debt limit unless you have a balanced budget amendment with two-thirds requirement to raise taxes. now, a balanced budget amendment to pass the congress would take 67 senate votes, two thirds and also have to get through 38 states, i guess, ratification. is this a smart strategy for these republicans to get more concessions from the

democrats? >> no. and a the lot of people are not going to want to hear that because balanced budget amendment sounds great, right? the federal government should not be able to spend more than it takes in. here is the problem. just what you said, you need 67 votes to pass this, there is no way republicans get enough democrats to do that and what they're basically saying is okay, we're willing to maybe turn down two trillion dollars worth of spending cuts. we didn't have a few months ago that would be part of this debt hike deal. because we're not getting a balanced budget amendment or we have a vote, and what you basically do is allow a lot of democrats to vote for the thing that won't pass in the end. and it could innoculate them next year, during an election. i want to hear from mr. tea party here in treatment. and-- ments founder of the journal. >> well, it's a beautiful plan, unlikely plan, balance the budget and wouldn't have to do it immediately, five years, and get the 38 states. >> bennett of of utah and

demint. >> really, it has a 18% gdp spending limit and not balancing higher limit of taxation. as much as i want to strongly and enthusiastically call for this, kim a right. the math is such that it can be a political disaster for the republicans because all of the vulnerable democrats up in 2012, could vote for it, get the political cover and saying look i'm for a balanced budget and still didn't pass. so what they need to focus on is cuts this year that are real. >> all right, dan, where does this leave us briefly. are we headed for a crackup? >> we're headed for the august 2nd debt limit deadline. it's too bad this fight, an important political fight has to be fought over the technical legal requirement. both sides have incentive to do a deal here and it's very hard to see how they're going to pull it off. i think they're very far apart and so i think we're headed for a potential train wreck on august 2nd. >> okay, dan, thanks. still ahead, a big victory and

a quest to rein in public unions. a state battle that took on national significance. when we come back we'll ask wisconsin governor scott walker what he learned from that fight. well-being. we're all striving for it. purina cat chow helps you nurture it in your cat with a full family of excellent nutrition and helpful resources. purina cat chow. share a better life.

>> in a big victory for scott walker, the supreme court held up a law for rights for state employees passed by g.o.p. legislators and signed by the governor in march. the so-called budget repair bill led to weeks of angry union-led protests that left walkers approval rating in the low 40's and six republican state senators facing recall elections later this summer. i spoke with governor walker and asked him what if anything he would have done differently. >> the biggest thing if i had to do it back again, would be to try and spend more time upfront articulating exactly

what we're doing. it wasn't just about the budget and certainly wasn't about temporary budget savings, it was about long-term structural changes at that allow not only the state government, but local governments and particularly school districts to balance the budget. the other big thing that i think even now, you guys talked about it a little bit in the pages. wall street journal, but talked about the reforms that would allow us to put the best and brightest in our schools and local government. things at that right now are dictated by seniority and contract instead can be done by merit and held for performance. that's going to make our schools better. >> ultimately the local school districts can do away with teacher tenure and valuation systems. some of the reforms that chris christie proposed outsiders, is that part of the reform. >> we will open the doors so the local school districts will have the ultimate control and come in and have a system and we work with folks on and make sure it's a good system

assessing and what happens with the students we have a good base of information in the state and empower the school district who pay up the performance and set up the systems and work with employees as partners in the system as opposed to having been dictated through the collective bargaining process and the sense of entitle, it's not a write, and the federal government would have it and they don't. >> so at lee cal school districts, renegotiate the contracts with teachers and all of these will be up for negotiation ins a way they'll neveren before. >> and setting up for process. the only thing left is the base salary and everything else, won't be for a collective barning process, it will be through superintendents, school board members, principles, teachers, parents, supporters ultimately coming together and putting together the policy what's in the best interest of our schools and kids and they won't have anything dictated. >> paul: i guess the the ultimate test whether or not you've ultimate had i succeeded is whether the economy of wisconsin creates

enough jobs. i was on the website, a nonpartisan office and still got in wisconsin the 40th busiest tax climate and tax rate 7.75%. do you have any plans for the budgets. >> the over all budget that i'm signing, net reductionings, and property taxes and some schools, like where my two kids go to public school and actual see an actual reduction. >> that's the property tax, not the state income tax. but in our state that's important because we have some of the highest property taxes in the kun and we're creating back in that. and it doesn't cut the income tax and like to do in the future and stimulate the economy. for us some were in 2010 and rise taxes and we've seen our rankings move from the recent survey from chief executives across the country, rose from 41 up to 24 in terms of the

business states and probably most impressive statistic for us and just a few weeks ago, the state wide chamber did the annual survey, from-- and a year ago, 10% said we were headed in the right direction and after the the last survey a couple of weeks ago, 88% of job creators said in our state, got to have more jobs, the real test. >> paul: let's talk about the the recalls. six of the republicans in state senate are up for a recall on august 9th. not too long from now. >> that's right. >> and a lot of money thrown in. what's your strategy from the democrats and unions to essentially overturn your majority and say, look, they voted for this and show the negative consequences and punish the supreme court justin and use that as a refrn dumb. >> they lost that race. >> they lost. it was close, but they lost. >> and what's your strategy to counter that? >> they're going to put 20 to 25 million in. >> that much. >> a remarkable number and i

spent 13 million dollars state wide. this is 20 to 25 million potentially on the series of nine and six that you mentioned republicans and three state senators to defend on the democratic side and our strategy is 0 to get the message out and help the candidates out and party's going to come in and others i mantel are going to come and help down. and i believe, we don't have to have match dollar for dollar, but close so we can get an equal playing field when it comes to an echo chamber. every day and week and month has gone by. more and more people in our state, this is a good thing to do and more and more storage out how school districts are paying off in layoffs and protecting the middle class job and how the property taxes and how the economy will improve 25,000 jobs this year and 11 1/2,000 and all of those for people to be successful. >> the other side is really,really motivated and i think you see the approval

rating, democrats by 9% and how do you get your voters as motivated because they're saying, hey, we want, you know, so, you know, they're-- it's easier to get angry about something when you lost than it is to protect something when you have a victory. >> i think you saw in the supreme court race a month after that election, the supreme court incumbent, i think by any measure was likely to have lost that election because you had one side that was motivated. going to try to punish someone by electing somebody to talk his place and the electorate in wisconsin said that's not the way to elect a supreme court justice. i think in the same way, people across the state not only realize what we've done has been effect af and helped it turn around the economy, roux are recall election. and one vote, recalls shouldn't be about one vote and should be about misconduct for office and if anybody makes a case for that, the three democrats who left the state for three weeks and make the case-- if you left a factory and left your job for three weeks without approval.

>> paul: you'd be out of a job. >> yeah, you'd be terminated. >> paul: governor walker, thank you for being here. >> a pleasure. >> paul: when we come back, president obama pulls the plug on his troop surge, all, but declaring mission accomplished. will prematurely claiming victory get him the political victory he's looking for? as a manager, my team counts on me to stay focused. so i take one a day men's 50+ advantage. it's the only complete multivitamin with ginkgo to support memory and concentration. plus it supports heart health. [ bat cracks ] that's a hit. one a day men's.

>> starting next month, we will be able to remove 10,000 of our troops from afghanistan by the end of this year. and we will bring home a total of 33,000 troops by next summer. fully recovering the surge i announce at west point. >> that was president obama wednesday night, overruling his military advisors and pulling the the plug on the afghan's troop surge he ordered just 18 months ago.

have the goals of the surge been achieved and can the mission on the ground in afghanistan succeed once the draw down begins. let's ask bret stevens and editorial board member matt comiskey. so, the military advisors, chairman of the joint chiefs, militia mullen and general david petraeus say they can still accomplish the mission. what are your sources telling you? >> they are clearly against this none of the military advisors back the plan. they know on mullen's testimony on the hill, this is much riskier and brings with it a much higher chance of failure and short circuits the strategy that the president set out only 18 months ago. and they've made gains over to the east and they're not sure they can hold-- >> that's where the sanctuaries for the taliban are to the east. >> that's where the fight will be. >> and most importantly, they're going to pull out next summer, smack in the middle of

the fighting season and basically have about five, six brigades packing up and the taliban is pressing its advantage. >> what message will the pakistani's take away and they need them to help clear out the sanctuaries and make them more or less likely to cooperate. >> among those rooting for the collapse of the afghan government, it's going to em bolden them, a date certain for n.a.t.o. and american withdrawal. among those for moderates and what happens in the pakistan, it sends a disastrous message to them. and means the chances are the taliban is going to survive and going to get stronger on both sides of the border. >> so, the military though, which is the cooperation, we really need, are they going to be more or less likely to cooperate. >> no, the military is going to have to start pursuing its own options which are traditional ongses and supporting anti-american groups like the network which which we have longstanding ties, the let, which you saw, now operating in afghanistan as well. and the chances are that this

move is going to further radicalize the pakistani military. >> and this really does vindicate what the military always said, that america does not have the same power. >> the pakistan military always said. what about the domestic political consequences, the striking thing to me is, of late, is how many republicans are basically saying, and really not objecting to this kind of a drawdown, whereas two years ago they might have. so, what's the political cost for the president in doing this? >> the political cost is down the road. if next summer we resurgents. >> what republican is then going to say he we should have stood, fought and run when you had republicans running for the exit sides as the president. >> let's talk about the republicans on libya and some

are talking about cutting off funds for the libyan bombing operation. are we see a sea change inside the republican party about their willingness to support foreign military operations? >> yeah, i think it's part opportunism, but that leads to a much more isolationist republican party. >> oh, that word, isolationist, george will and a lot of others get offended by that. the president hasn't made the sale on libya and persuaded the american public. >> if you go back, this is what newt gingrich was saying in early march of this year arguing for precisely or almost precisely the same course that the president, that the president later adopted. the republicans thought to object and say, that gaddafi has been an enemy of the united states for a long time and has the blood of hundreds of americans on his hand and time we finish the job and not bye they are the way this american president has. the white house leaking that gaddafi may leave tripoli, fearful of bombing. >> is gaddafi going to fall no hart what congress does?

>> i think he'll fall eventually. the question is how long will it take and what cost in lives and how long to put libya back together. >> paul: you expect ultimately he will leave. >> i mean, if the military line-- we have much bigger problems. >> paul: all right, matt, we have to take one more break. when we come back, hits and misses of the week. i don't always have time to eat like i should. and the more i focus on everything else, the less time i have to take care of me. that's why i like glucerna shakes. they have slowly digestible carbs to help minimize blood sugar spikes, which can help ler a1c. glucerna products help me keep everything balanced. [ golf ubs clanking ] [ husband ] i'm good! well, almost everything. [ male announcer ] glucerna. delicious shakes and bars. helping people with diabetes find balance. a living, breathing intelligence that's helpi drive the future of business. in here, inventory can be taught to learn.

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. >> arthel: ichl time now for hits and misses of the week. first you. >> a missed washington schizophrenic policy on smoking no matter what you're smoking. the f.d.a. proposed you put the terrifying photos on the back of cigarette packs to make people see how horrible it is. meanwhile, there's a bilk introduced in the house co-sponsored on the left by barney frank and on the right by ron paul that would-- lets the space legalize the sale and taxation of marijuana so here is a country that's

simultaneously getting hysterical about smoking tobacco and about to legalize the smoking of high powered pot. a great what sore. >> this is a hit for europe, the dutch politician willeders who returns the third largest party in that country. had been brought up on charges of hate speech for his comments about iz slam, saying that the religion was a totalitarian religion and had a two-year trial and ended in acquittal. you don't have to agree with everything he says to believe that free speech is especially for speech that we don't agree with, this is a good day for europe and a good day for him as well. >> matt. >> it's a hit to an online movement in saudi arabia, called women to drive. for the last month or so, they've been organizing impromptu permits and women drive around saudi arabia. in saudi arabia, a woman is not allowed